Dowlais Group PLC (DWL) AI Stock Analysis

• Market Cap: £901.78M
• Dividend Yield: 6.24%
• Average Volume (3M): 5.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: -10.83%
• EPS Growth: 64.55%
• Country: UK
• Employees: 23,327
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Manufacturers
• EPS (TTM): -0.05
• Shares Outstanding: 1,344,524,200
• 10 Day Avg. Volume: 9,453,426
• 30 Day Avg. Volume: 5,551,780
• PEG Ratio: 0.51
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £70.67
• Price Target Upside: 4.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Dowlais Group PLC's overall stock score reflects significant financial challenges, including declining revenues and negative cash flow, which weigh heavily on the score. Despite positive market momentum, caution is advised due to technical indicators suggesting potential overbought conditions. The valuation is mixed, with an attractive dividend yield but negative earnings. Recent corporate governance moves are positive but insufficient to offset broader financial concerns.

Positive Factors

Financial Performance

Dowlais has produced a very resilient set of results, in line with guidance provided in November, and slightly above forecasts on both P&L and cash/debt.

Strategic Opportunities

The update highlights the significant improvement potential for the business and the strategic opportunities available.

Negative Factors

Complexities of Merger

The merger is complex due to factors like US small cap share, voting, FX, antitrust, and bid risk, raising questions about whether it is the right deal for Dowlais and its shareholders.

Merger Concerns

The proposed merger is seen as undervaluing Dowlais, which is viewed as a disappointing move and a significant departure from its strategy.

Dowlais Group PLC Business Overview & Revenue Model

Company Description

Dowlais Group Plc manufactures and sells automotive parts in the Americas, Europe, and Asia. The company engages in developing, manufacturing, and supplying automotive drive systems for conventional and electric vehicles. It manufactures sideshafts, propshafts, and constant velocity joints for passenger vehicles; and AWD systems and eDrive systems, as well as provides component solutions to systems, including control software. The company is also involved in the production of metal powders and powder metal parts for the automotive and industrial sectors, as well as the provision of hydrogen storage solutions. The company was formerly known as Dowlais Group Headquarters Plc and changed its name to Dowlais Group Plc in February 2023. Dowlais Group Plc was incorporated in 2023 and is based in London, the United Kingdom.

How the Company Makes Money

Dowlais Group PLC generates revenue primarily through the sale of its engineering and technology products and services. Key revenue streams include manufacturing contracts, technology licensing, and service agreements with clients across various industries. The company also earns income from strategic partnerships and joint ventures, which help expand its market reach and enhance its product offerings. By continuously investing in research and development, Dowlais Group ensures that it remains competitive and can offer innovative solutions that meet the evolving needs of its customers.

Dowlais Group PLC Financial Statement Overview

Summary

Dowlais Group PLC is facing financial challenges highlighted by declining revenues, operational losses, and negative free cash flow. While the balance sheet shows some stability, the overall financial health is weakened by high leverage and consistent net losses. The company needs to address operational inefficiencies and enhance cash flow management to improve its financial standing.

Income Statement

The company has experienced declining revenue with a decrease from 2023 to 2024. Gross profit margin has remained consistently low, and the net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are weak, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio shows moderate leverage, but the increasing net debt is concerning. The company has a reasonable equity ratio, which suggests some financial stability. However, declining stockholders' equity over the years is a potential risk.

Cash Flow

Free cash flow has turned negative, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is poor due to negative net income, highlighting cash generation issues. The free cash flow to net income ratio reinforces concerns about cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.60B	4.34B	4.86B	4.59B	4.12B	4.13B
	Gross Profit
510.00M	646.00M	757.00M	658.00M	581.00M	470.00M
	EBIT
38.00M	-106.00M	-450.00M	58.00M	-121.00M	-256.00M
	EBITDA
-88.00M	345.00M	31.00M	386.00M	263.00M	342.00M
	Net Income Common Stockholders
-517.00M	-173.00M	-501.00M	-82.00M	-302.00M	-199.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
270.00M	354.00M	313.00M	270.00M	275.00M	141.00M
	Total Assets
6.93B	5.71B	6.23B	6.93B	10.04B	10.43B
	Total Debt
1.26B	1.44B	1.31B	1.26B	2.71B	2.77B
	Net Debt
993.00M	1.10B	998.00M	993.00M	2.44B	2.63B
	Total Liabilities
3.72B	3.40B	3.67B	3.72B	5.21B	5.63B
	Stockholders Equity
4.93B	2.27B	2.53B	4.93B	4.80B	4.78B
Cash Flow		Free Cash Flow
22.00M	-71.00M	12.00M	-12.00M	55.00M	205.00M
	Operating Cash Flow
298.00M	120.00M	307.00M	210.00M	223.00M	390.00M
	Investing Cash Flow
-241.00M	-119.00M	-262.00M	-137.00M	-115.00M	-140.00M
	Financing Cash Flow
-42.00M	17.00M	23.00M	-100.00M	26.00M	-364.00M

Dowlais Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DWL, the sentiment is Positive. The current price of 67.35 is above the 20-day moving average (MA) of 61.49, above the 50-day MA of 59.03, and above the 200-day MA of 58.59, indicating a bullish trend. The MACD of 3.10 indicates Negative momentum. The RSI at 76.23 is Negative, neither overbought nor oversold. The STOCH value of 72.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DWL.

Dowlais Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPS	78 Outperform	£834.10M	13.50	38.12%	2.65%	18.41%	301.21%
CVSG	70 Outperform	£899.62M	51.74	8.64%	0.64%	2.70%	-51.35%
MOON	64 Neutral	£843.10M	―	890.75%	0.39%	5.32%	-152.26%
Sector *	62 Neutral	$6.98B	11.38	2.86%	3.90%	2.64%	-22.07%
AML	55 Neutral	£760.98M	―	-39.39%	―	-2.99%	-26.87%
DWL	54 Neutral	£901.78M	―	-7.21%	6.24%	-10.83%	64.55%
THG	49 Neutral	£401.02M	―	-27.20%	―	-14.37%	-28.78%

Dowlais Group PLC Corporate Events

Dowlais Group Reports Q1 2025 Performance Amid Market Volatility

Dowlais Group PLC reported a trading update for Q1 2025, indicating performance in line with expectations despite a challenging market environment. The company’s adjusted revenue saw a slight decline due to foreign exchange impacts and lower volumes in certain segments, although its operating margin improved. The automotive sector faced a decline in driveline revenue, while ePowertrain and the China joint venture showed growth. Powder metallurgy revenues decreased, particularly in Europe and North America. The company anticipates a weaker first half due to tariff impacts but expects recovery in the second half. Full-year performance is projected towards the lower end of guidance, with ongoing restructuring and performance initiatives expected to mitigate challenges.

Spark’s Take on GB:DWL Stock

According to Spark, TipRanks’ AI Analyst, GB:DWL is a Neutral.

Dowlais Group PLC’s overall stock score reflects significant financial challenges, including declining revenues and negative cash flow, which weigh heavily on the score. Despite positive market momentum, caution is advised due to technical indicators suggesting potential overbought conditions. The valuation is mixed, with an attractive dividend yield but negative earnings. Recent corporate governance moves are positive but insufficient to offset broader financial concerns.

To see Spark’s full report on GB:DWL stock, click here.

Dowlais Group PLC Releases 2024 Annual Report and AGM Notice

Dowlais Group PLC has released its 2024 Annual Report, Notice of the 2025 Annual General Meeting (AGM), and Form of Proxy for the AGM to shareholders. These documents are available on the National Storage Mechanism and the company’s website. The AGM is scheduled for May 21, 2025, at Investec Bank plc’s London office. This publication ensures transparency and compliance with regulatory requirements, providing stakeholders with essential information about the company’s performance and governance.

Dowlais Group PLC Announces Change in Voting Rights

Dowlais Group PLC announced a change in the voting rights held by Ninety One UK Ltd, which has decreased from 5.079900% to 4.969200%. This adjustment in voting rights reflects a disposal of shares, which may influence the company’s shareholder dynamics and could have implications for its governance structure.

Dowlais Group Executives Acquire Shares as Part of Bonus Plan

Dowlais Group PLC announced that its CEO, Liam Butterworth, and CFO, Roberto Fioroni, have purchased ordinary shares as part of the company’s annual bonus arrangements for the 2024 financial year. The shares, acquired on March 10, 2025, are subject to a two-year holding period, reflecting a commitment to align management interests with those of shareholders. This transaction, conducted under the UK Market Abuse Regulation, underscores the company’s focus on incentivizing leadership through equity participation, potentially enhancing stakeholder confidence in the company’s governance and long-term strategy.

Dowlais Group PLC Grants Conditional Share Awards to Executives

Dowlais Group PLC has announced the granting of conditional share awards to its Executive Directors under the 2024 Omnibus Share Plan. CEO Liam Butterworth and CFO Roberto Fioroni received awards of 4,143,668 and 1,955,458 shares, respectively. These awards are contingent upon the company’s performance until December 2027 and include a two-year holding period post-vesting. This move aligns with the UK Market Abuse Regulation and reflects the company’s commitment to aligning executive incentives with long-term performance goals.

Dowlais Group PLC Announces New Board Appointment

Dowlais Group PLC has announced a significant board appointment. Celia Baxter, who serves as the Senior Independent Director and Chair of the Remuneration Committee at Dowlais, has been appointed to the board of Volution Group PLC as a non-executive director, Remuneration Committee Chair Designate, and a member of the Nomination and Audit Committees. This appointment is effective from March 5, 2025, and reflects Dowlais Group’s commitment to strengthening its leadership team and enhancing its governance structure.

Dowlais Group PLC Reports 2024 Results and Strategic Moves for Growth

Dowlais Group PLC reported its full-year 2024 results, highlighting a 6.4% decline in adjusted revenue, primarily due to challenges in the ePowertrain product line. Despite lower volumes, the company managed to improve its adjusted operating margin through cost management and commercial recoveries. Dowlais announced a strategic combination with American Axle & Manufacturing Holdings Inc., aiming to create a larger, diversified global manufacturer. The company also disposed of its GKN Hydrogen operations and conducted a strategic review of its Powder Metallurgy segment, positioning itself for sustainable growth and cash generation.

Dowlais Group PLC Announces Board Committee Change

Dowlais Group PLC has announced a change in its board committee, appointing Philip Harrison as a member of the Remuneration Committee effective from March 3, 2025. This appointment aligns with the company’s compliance with Listing Rule 6.4.6(3), potentially impacting the company’s governance and strategic decision-making processes.